Page 95 - Stakis Consolidated Teaching Note

The strategy for Andros was, expand in almost every area
and every direction.

It was not all about growth, Andros did realise that

disinvestments were required, which included the loss-
making Trend Holidays, Grovsenor insurance and an

earlier acquired stock broking firm.

The Andros strategy had some very obvious failings as he
tried to live up to his statement of “We will double the

company in five years. No trouble about that. If we don’t,

my butt should be kicked”. This statement put pressure

on him as soon as he said it, he knew that there were
plenty of people watching waiting for him to fail; it must

have clouded his judgement. A simple PEST analysis

would have brought the rising interest rates and slowing
of the economy, to his attention.

The construction of the Country Court hotels was 50%

over budget and with the recession looming, a good idea,
but at the wrong time.

Market research would have told him that the West of

Scotland was the wrong place for up market nursing
homes or there were just not enough people interested

in the Aviemore area of Scotland, as foreign holidays

became more affordable.

On the financial side Andros had no strategy, he

borrowed at one point from twenty-one different

sources, some with short-term loans (less than one year),
as he tried to prop up his failing expansion plan. Andros